A potential TikTok deal emerged Monday between the US and China, two days before the Trump administration’s latest sell or be banned deadline. Now, attention is shifting to the app’s Chinese algorithm, with the Financial Times reporting it will be used in the US version.
Wang Jingtao, deputy director of the China’s national internet regulator, told reporters that the deal included “licensing the algorithm and other intellectual property rights.” The Financial Times further reports that US Treasury secretary Scott Bessent said a US version of TikTok would have some “Chinese characteristics” but that American investors would control it.
That’s a significant turnaround as TikTok’s algorithm has been at the heart of many conversations and analysis about the app’s presence in the US. Lawmakers have sought to analyze how it operates and pushed for TikTok to be banned or sold in large part to move away from Chinese technology. President Trump holds the power to approve any potential deals.
The TikTok turmoil has seen American companies pitch themselves as a solution. In March, Perplexity AI proposed itself as a buyer with the promise to completely rebuild TikTok’s algorithm for the US audience.
April saw a near agreement occur which would have given Oracle responsibility over the US version’s data and a small stake in the company. Oracle’s cloud storage has held US users’ data since 2022 and the company has conducted reviews of TikTok’s algorithm.
